credit card debt because of coronavirus

The Coronavirus has caused great financial hardship for many Americans. The COVID19 pandemic has forced many companies to lay off staff and close its doors.  One area in particular which many Americans are struggling is credit card debt because of coronavirus. Fortunately, there are many government programs available to help eliminate credit card debt from Coronavirus. For instance, a Chapter 7 bankruptcy can wipe out all of your credit cards without paying anything towards the balance. To see if Chapter 7 is a good fit for your needs contact a bankruptcy law firm in Tampa to schedule a consultation.

Late Credit Card Payments Because of Coronavirus

For most people, the difference between credit card debt because of coronavirus (emergency supplies, living expenses, unemployment) and normal credit card use is plain to see. There is a global pandemic and with so many jobs impacted people are incurring a lot of credit card debt because of coronavirus. Unfortunately, credit card companies don’t view these types of debt differently. Regardless, whether the debt was for necessary supplies or vacations, lenders will usually take measures to collect the debt, such as:

  1. Place the account in collections
  2. Harass borrowers with countless bills and phone calls.
  3. File lawsuits

If a credit card company is successful in suing you they will receive a judgment. At this point, the company suing you is likely a debt buyer and not the credit card company that you originally owed. The judgment holder will likely be charging interest and their legal fees as they pursue collection. In many cases, the interest and legal fees will be more than the original loan amount. However, a Chapter 7 bankruptcy can eliminate the judgment, including the additional interest and legal fees. See Florida Statute 55.145. A Tampa bankruptcy attorney should be able to provide more details about your specific case.

Collection of Coronavirus Credit Card Debt

This is the scary part. Under Florida law, most judgments are valid for 20 years. See Florida Statute 95.11. Therefore, the creditor has 20 years to continue to attempt collection. The creditors may even be allowed to garnish your paycheck, take money from your bank account, and put liens on your property. Moreover, courts allow the garnishments to begin before the borrowers even receive notice. However, you can immediately stop a garnishment by filing Chapter 7 or Chapter 13 bankruptcy.

Bankruptcy Law Firm in Tampa

At Florida Law Advisers, P.A. we understand that these are difficult times. Too many Americans are relying on credit cards as a result of Coronavirus. If you find yourself struggling to keep up with debt, we may be able to help. You can all us at 800 990 7763 to schedule your free consultation with a bankruptcy lawyer in Tampa.

Frequently Asked Questions

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